Question

Select a product/brand you feel uses psychological pricing and describe what message the marketer is attempting to communication (include the product/brand in the subject line).?

Answer 1

Psychological pricing refers to the use of psychological factors to appeal to the minds of the people in the sense that the product is priced based on the impact it will have on the consumers. This can be of different types which includes discount pricing, charm pricing, prestige pricing and competitive pricing. Companies regularly make use of psychological pricing in order to drive higher traffic of valued consumers to their point of sales. One such example is Walmart. Walmart uses the discount, off pricing methods frequently, where, they set the price of the product from an even number to the nearest odd number. This is due to the impact it has on people's mind when they think something is priced lower because it has an odd number ending.

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